Fox Reports Fourth Quarter Operating Income of $430 Million, a $242 Million Increase, on Revenue Growth of 15%
Wednesday August 13, 7:35 am ET
Fourth Quarter Operating Income Before Depreciation and Amortization Grows 59% to $505 Million
NEW YORK--(BUSINESS WIRE)--Aug. 13, 2003-- Record Full Year Operating Income of $1.8 Billion
on Revenue Growth of 13%. Operating Income before
Depreciation and Amortization Grows to Record $2.1 Billion
QUARTER HIGHLIGHTS
Television Broadcast Network operating income before depreciation and amortization improves $89 million as prime-time ratings growth drives advertising revenues.
Operating income before depreciation and amortization at Television Stations up 10% on higher advertising revenues from ratings growth across most dayparts.
Cable Network Programming operating income before depreciation and amortization more than doubles on strong ratings and advertising growth at Fox News Channel and Regional Sports.
Continued success of theatrical releases and robust home entertainment sales of film and television titles increase Filmed Entertainment operating income before depreciation and amortization by 14%.
FULL YEAR HIGHLIGHTS
Record operating income before depreciation and amortization from Filmed Entertainment, Cable Network Programming and Television Stations segments.
Completed strategic acquisition of television station WPWR-TV in Chicago, giving the Company duopolies in the top three television markets in the country.
Announced agreement to acquire 34% of Hughes Electronics, including its leading DTH provider DirecTV, for approximately $6.6 billion in cash and stock.
The Fox Entertainment Group (NYSE: FOX - News) today reported fourth quarter consolidated revenues of $2.8 billion, a 15% increase over the $2.4 billion in prior year, and full year revenues of $11.0 billion, an increase of 13% over the $9.7 billion reported a year ago.
Operating income before depreciation and amortization(1) for the fourth quarter was $505 million, up 59% over the $318 million reported a year ago. For the full year, operating income before depreciation and amortization was a record $2.1 billion, an increase of $1.7 billion over the $413 million reported in fiscal 2002, which included the provision for the Company's national sports contracts. The Company achieved this robust quarterly and full year growth on the strength of double-digit increases across all operating segments. Operating income, as a result of the factors discussed above, increased in the fourth quarter to $430 million compared to $188 million a year ago and for the full year increased to $1.8 billion, $1.9 billion higher than fiscal 2002.
Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch said:
"The dramatic growth we achieved during our fourth quarter was a fitting conclusion to a record-breaking year: record profits at our film, television stations and cable segments; record cash flow from operations; and record ratings and market share growth at our broadcast and cable properties. It was a year in which we made enormous progress, not only financially but strategically - particularly with our pending acquisition of a 34-percent interest in Hughes Electronics and its leading pay-TV platform, DirecTV.
"This past year was not without its challenges, including the costs associated with covering the war in Iraq. Our strong results in the face of such obstacles are clear testimony to both the fundamental strength of our Company and the resilience of our underlying businesses. At the same time, we took prompt steps to improve businesses we felt were not delivering on their full potential. We addressed head-on the ratings weakness at the FOX network during the first half of the year, and as a result FOX finished the broadcast season with two straight sweeps victories, vastly improved revenues and significantly higher earnings.
"Overall, we are extremely pleased with the performance of all our businesses during the past year, and we are determined to build on our success in fiscal 2004. Certainly the indications are promising: the exceptionally strong broadcast and cable upfronts; the growing popularity of our television and print products; and the continued health of the advertising market. All of these factors, as well as the momentum we have achieved across our key businesses, give us confidence that fiscal 2004 will be another year of operational excellence and healthy profitability."
Consolidated Operating Income (Loss)
3 Months Ended 12 Months Ended
June 30, June 30,
2003 2002 2003 2002
----------------------------------------------------
US $ Millions US $ Millions
Filmed
Entertainment $ 92 $ 77 $ 662 $ 485
Television
Stations 245 189 921 598
Television
Broadcast Network 29 (60) (100) (283)
Cable Network
Programming 64 (18) 300 6
Provision for
Sports Contracts - - - (909)
-----------------------------------------------------
Consolidated
operating
income (loss) $ 430 $ 188 $ 1,783 $ (103)
=====================================================
Consolidated Operating Income (Loss) Before
Depreciation and Amortization(1)
3 Months Ended 12 Months Ended
June 30, June 30,
2003 2002 2003 2002
----------------------------------------------------
US $ Millions US $ Millions
Filmed
Entertainment $ 105 $ 92 $ 717 $ 544
Television
Stations 260 237 983 798
Television
Broadcast Network 34 (55) (81) (263)
Cable Network
Programming 106 44 472 243
Provision for
Sports Contracts - - - (909)
----------------------------------------------------
Consolidated
operating income
(loss) before $ 505 $ 318 $ 2,091 $ 413
depreciation
and amortization
====================================================
During the first quarter of fiscal 200